Property Management Gone Wrong

A few years back I took over management of a single residence home. I remember the owner reluctantly describing to me the damage done to the home by the recently vacated resident. I agreed to meet the owner at the property for a walk through and inspection. The condition of the home turned out to be worse than he realized. The junk furniture left behind was the least of this owner’s distress. Broken windows from an obvious break in, garbage piled on the side of the home, bags of rotten food thrown into the garage and what appeared to be the leftovers of an illegal marijuana grow operation including 25 large containers of wet dirt and marijuana plants stacked against the siding behind the home. Although I’ve seen this scenario with self-managed properties this rental was “professionally managed”.

Almost every rental property owner has their horror stories about bad residents, damaged properties and the difficult process of trying to evict bad residents and recoup losses. Here are five things that may alert you to the fact that your management company is not doing what they are being paid to do and it may be time to look for a new property manager.

If they stop communicating with you

Your property manager should know about any potential issues before you do. They should be on top of things at your property, and they should be reporting to you regularly. You shouldn’t have to ask them about your property and you shouldn’t have to spend time managing the property manager.

A good property manager will have regularly scheduled times to call or email you. If you are noticing a lack of communication it might suggest there is something your property manager is avoiding talking to you about. It may also be an indicator that it may be time to look for a new property manager.

Inspections are not being done

Property managers typically conduct a yearly inspection inside the property and a monthly inspection of the exterior. Regular inspections are necessary to ensure your property stays in good shape. You should receive a report that lets you know what sort of repairs are needed, whether there are any code violations, if your residents are taking care of the property and anything else you would need to know about your property. 

It is probably not a good sign if the neighbors are calling you to report that the grass is three feet high and the garbage hasn’t been picked up for months. If your property is not being inspected regularly it may be time to look for a new property manager.

Maintenance issues are not being addressed

Not making needed repairs will strain the best landlord-tenant relationship. Not to mention if the repair is major enough to make the place uninhabitable, your tenant might have grounds to break the lease.

If a tenant needs something repaired your property manager should let you know immediately and then arrange for the job to get done in a timely manner. If your tenant contacts you because they can’t get any help from your property manager, it may be time to look for a new property manager.

You are not receiving monthly reports

Every month, your property manager should send you a report of your income and expenses related to your property. The report should list how much rent was collected, how much was deducted in property management fees, how much was taken out for maintenance, etc. Other reports such as a rent roll, a delinquency report and periodic market surveys are also essential. If you or your accountant are not receiving the needed reports monthly it may be time to look for a new property manager.

You are consistently getting bad tenants

Properly screening potential residents is critical for reducing risk to your property, avoiding legal issues and preventing vacancy loss. Happy, long term residents will also cut down on turnover costs. Your property manager should be responsible for screening applicants. If they are moving in tenants that do not pay on time, damage your property and generally cause you grief it may indicate they were not properly screened. If this happening it may be time to look for a new property manager.

At Kinetic Properties, we are always looking to improve and welcome your suggestions. We’d be delighted to work with you.

Phone: 503-305-7204
Fax: 503-303-5809
Email: info@kineticpropertiesllc.com
16650 SE McLoughlin Blvd Milwaukie OR 97267

Facebook | LinkedIn | Google+ | Twitter

#propertymanagement
#portlandpropertmanager
#portlandpropertymanagement
#commercialpropertyportland
#portlandtenantowner

5 Things Every Real Estate Investor Needs to Know!

Every real estate investor is an idealist in the beginning. While the prospect of large profits and huge income streams is always appealing, possessing a working knowledge of what you are getting yourself into is essential to success. Even if you are a seasoned real estate investor it is unrealistic to assume you know everything. Due diligence and continuing education are critical to making money as a real estate investor. Here are five basics that every new investor should consider:

1. 9 to 5 Does not apply: Investing in real estate requires putting in the time. You may need to knock on doors, attend after hours networking meetings and do some reading to educate yourself. You will need to call, email, direct mail, network, follow leads and be ready to act when an opportunity presents itself. It will require consistent effort to be successful. Often, deals will go to whoever is willing to outwork everyone else. You should expect to work nights and weekends just to keep up with your competition. As simple as being an investor is at times, it takes persistence and hard work to be successful.
2. Wrap Your Head Around the Process: No one can be an expert in every area of real estate investing, but you must possess an understanding of the process. While an understanding of the process is crucial for the offer and purchase, it is equally important for what your plans are after the deal is done. If you are looking to flip a property, you will need a thorough inspection to know what the rehab costs will be, have a reliable contractor, correctly assess resale value etc. If you want to add rental properties to your portfolio you will need to know what’s happening in the current rental market, what is required as a landlord and what the current tenant, landlord laws are in your area. It may save you money in the long run to hire industry professionals such as a real estate agent or real estate manager to assist you. The better you understand the process, the better investor you will be.
3. Find Your Comfort Zone: While large income streams and huge profits are entirely possible, it takes time to learn the industry. Finding traction may mean taking smaller deals at the start. Working on smaller deals may lower your risk while giving you an opportunity to learn the business and still make a profit. In most cases, you will not be able to retire off the income from your first investment. You may need to temper your expectations at the beginning. Making less money to get a deal done is not a bad thing when you are just starting out. Focusing on smaller deals inside a geographic area you’re comfortable with is one of the easiest ways to get your feet wet and learn the business.
4. Only Take on What You Can Handle: It may not be realistic to go from zero to hero overnight. Even seasoned real estate professionals find handling multiple projects a challenge. Growing too fast can be as detrimental to your business as not growing at all. Taking on a deal that you aren’t prepared for increases risk and could potentially cost you money. There is a big difference between following leads and closing deals. It can take months or even years to get the hang of real estate investing. In growing too quickly, you can damage your business in a way that may be difficult to recover from especially if you do not have large cash reserves. If the speed of your growth exceeds your ability to perform due diligence or effectively assess the risk of potential investments, you’re growing too fast.
5. Be a realist: If you have been bitten by the real estate bug you will always be on the lookout for more deals. Successful investors make decisions based on the facts and strive to not allow their emotions to get in the way. This requires a system to provide you with an accurate picture of the costs, risks and financial benefits of a property before you close. Manipulating the data to convince yourself that a property can make money when it can’t won’t be a good business practice. Enough negative cash flow will eventually destroy your business. True numbers do not lie. A cash flow analysis will be a great help in determining the potential profitability of a prospective property. Once you own the property you will need to have a system to evaluate key metrics to ensure sustainable property performance.

In my 18 years as a property manager, I’ve seen these concepts, as simple as they may be, make or break many neophyte real estate investors. Though this list is far from exhaustive it may provide the new investor with some “food for thought” and a starting place for further discovery.

At Kinetic, we are always looking to improve and welcome your suggestions. Please give us a call if you’re looking for a property to own or rent or if you need a management company with your best interest in mind.

Phone: 503-305-7204
Fax: 503-303-5809
Email: info@kineticpropertiesllc.com

16570A SE McLoughlin Blvd - Milwaukie, OR 97267

Facebook | LinkedIn | Google+ | Twitter | Website

#realestateinvestor
#portlandpropertymanagement
#realestate
#portlandinvestor

We Value Our Tenants at Kinetic Properties

We Value Our Tenants!

Most people have had a really bad renting experience at least once. It might have been where you were living or where you had your business. You called until you were blue in the face before anyone came out to fix something. You called with a simple question and couldn’t get an answer in a timely fashion or you were met with coldness. You find yourself wondering if there’s a real live person actually working in the management office. That’s not how we operate at Kinetic Properties. We want the owners to be happy, and we want you to be happy. You’re a valued tenant. This might even be a first for you!

Whether you are renting a place to live, or a place to work, we do our very best to provide value & make every process simple for you. You can schedule your rent payments online knowing that your information is secure and protected. You can also sign up for automatic reminders and submit a maintenance request online. We review the requests Monday through Friday from 9:00 a.m. to 4:30 p.m., except for holidays. We also have an emergency phone number that you can call, should you need to. No one likes an emergency, but we’ll be there for you! To see all of the reasons and the convenience involved in renting from us, please check out our Tenants Page.

If you think you have a need that we haven’t addressed, please contact us via phone email so that we can explore more options with you. If your issue is urgent, please call us… do not email if you have an urgent issue. As we said, this is about you being happy and knowing that you’ve made the right decision. We’re professional and friendly, and we promise to treat you with all of the courtesies that you deserve.

We work hard to make renting a positive experience for all parties. Should any differences come up where an owner is concerned, we will smooth the way for everyone. It’s our pledge to you.

We are always looking to improve and welcome your suggestions. Just give us a call and let’s get you into the perfect property!

Please visit our NEW site: http://www.kineticpropertiesllc.com

Phone: 503-305-7204
Fax: 503-303-5809
Email: info@kineticpropertiesllc.com

Facebook | Google+ | Twitter

#oregoncitypropertymanagement
#portlandtenants
#portlandpropertymanagement
#oregoncitycommericallistings
#oregoncityresidentiallistings

Calling All Real Estate Owners!

If you, or your company, own commercial properties or residential houses or units, we are exactly the company you’re looking for to help you keep the spaces rented and in the best shape possible, and to keep your tenants so happy that they never want to leave. What a concept: forever tenants.

At Kinetic Properties, we work for you and with you. We will be as hands-on or hands-off as you would like. We will list your properties to give them the best exposure to qualified leaseholders in both the residential and commercial areas. We handle all aspects of property management, and you can see the list of what we offer by clicking here for Management Services.  If you think you have a need that we haven’t addressed, please contact us so that we can explore more options with you.

As an owner, you won’t get lost in the maze that larger management companies frequently become. We offer a small company experience with big company services. We pride ourselves on being both professional and friendly and we do our very best to make renting a positive experience for all parties. Tenants are people, too, and we treat them with all of the respect that they deserve. Should any differences come up, we will smooth the way for everyone. We guarantee it.

You can feel the up and coming energy everywhere. Our team at Kinetic Properties is genuinely proud to be a part of it. We are always looking to improve and welcome your suggestions. Just give us a call and let’s be partners!

Phone: 503-305-7204
Fax: 503-303-5809
Email: info@kineticpropertiesllc.com

Website | Facebook | LinkedIn | Google+  | Twitter

#commercialpropertymanager
#portlandpropertymanagement
#oregoncitycommericallistings
#oregoncityresidentiallistings

Oregon City Business Owner or Resident?

Are you an Oregon City business, resident, or interested in becoming a part of the exciting things happening in downtown Oregon City?

If you want to expand your business, and are looking for a world class place to do so, Oregon City is the place to be right now. This historic Main Street town has huge plans to become the next happening Main Street in Oregon, with live/work opportunities in a historical and cultural epicenter of Oregon. Please attend the open house next Wednesday, March 30th to learn about this exciting project!

I can help you move your business into Oregon City now, before the prices jump up to premium pricing. Oregon City is already a booming Main Street, and prices are still affordable. I have multiple locations for lease right now and would love to help you find your business’ new home. Call me today.

Come See Us! We are at 6638 NE Sandy Blvd., Portland, OR 97213. Our office is the lower unit of this house at the corner of Sandy Blvd. and 67th Ave.

Phone: 503-305-7204
Fax: 971-544-7832
Email: info@hshmgmt.com
Website: http://www.hshpropertymanagement.com/

Facebook

LinkedIn
Google+
Twitter

#oregoncitypropertymanagement

#propertymanagement
#portlandpropertymanagement
#hshpropertymanagement

Don’t miss the Willamette Falls Legacy Project Open House on March 30th!

Don’t miss the Willamette Falls Legacy Project Open House on March 30th! http://www.rediscoverthefalls.com/march-30th-open-house/